Intel does a Record Q3, Misses Expectations

A steep rise in the demand for notebook computers powered by Intel chips has helped Intel post a record $9.96bn third quarter revenue, 18% higher than last year.

Net income in third quarter was $2.0 billion, or 32 cents a share, including 6 cents a share in tax and legal costs, Santa Clara, California-based Intel said tuesday in a statement.

Intel’s revenue forecast of $10.2 billion to $10.8 billion for this quarter fell short of the average $10.7 billion estimate. By contrast, Intel in the third quarter was unable to keep up with orders, costing sales. The company hasn’t been able to supply some of the chipsets fast enough. CFO Andy Bryant acknowledged the company’s sales would have been higher if it could have produced more chipsets for personal computers. He said the shortage could likely continue through the fourth quarter.

Meanwhile, Intel’s biggest rival, AMD has grown from 7.4 percent last year to 11.2 percent in server share market in the second quarter, becoming a serious challenge.

Intel also announced its dual core server processor just weeks back, almost six months after AMD unveiled its dual-core Opteron processor.